Report of Indian Institute of Public Administration ... - Ministry of Power

PROGRESS OF REFORMS
State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
Rapid and self-sustaining growth of the power sector and its financial viability is
essential for speedy and sustained socio-economic development of the State. In this
context, the State Government initiated comprehensive power sector reforms.
As part of the power sector reforms, the State Government decided to restructure the
balance sheet of RSEB as a precursor to restructuring of the integrated utility on
financial lines. The efficiency improvements in the utilities were expected to take time
and the State Government was committed to support the sector during the transition
period till turnaround was achieved. A Financial Restructuring Plan (FRP) for the
sector was prepared. The FRP contained the following:
(i) One-time restructuring adjustments;
(ii) Opening balance sheet and financial projections for the successor companies;
(iii) Commitments from the utilities and the State Government for the turnaround of
the sector; and
(iv) Transition period support from the State Government till turnaround of the
successor companies.
Investment Plans
Details of investment plan for the sector are given below:
Capital Investment Plan
(Rs crore)
Particulars 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Total
RRVUNL 287 983 926 1505 908 811 769 690 6,879
RRVPNL 288 432 487 524 577 784 1,020 947 5,059
Jaipur DISCOM 289 596 775 568 409 420 393 404 3,854
Ajmer DISCOM 293 571 571 604 464 454 438 363 3,758
Jodhpur DISCOM 275 594 618 644 560 464 493 340 3,988
Total 1,432 3,176 3,376 3,846 2,919 2,932 3,113 2,743 23,538
Among the various restructuring models, the State Government has committed itself
to the franchisee model as has been envisaged in the EA, 2003. The State is looking at
various models of franchisees because it is felt that the benefits will accrue not merely
by total privatisation but by introducing competition, which can be better obtained
through franchisees model. The State Government has so far taken up Alwar Circle
under the franchisee option.
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